Mining & Trade News

Mkango Resources has entered into a Project Development Funding Agreement with the United States International Development Finance Corporation (DFC), the U.S. government’s development finance institution, to secure US$ 4.6 million in reimbursable funding as part of the DFC’s Project Development strategy for the Songwe Hill rare earth project in Phalombe.

The funds will support Project Development activities in the form of Front-End Engineering Design (FEED) and value engineering studies.

Mkango President Alexander Lemon explains in a statement:  “The Project Development Funding will be equally matched by the firm’s contributions over the next 18 months.”

“Further, for a period until five years after the termination of the Agreement, the DFC will have the right (but not the obligation) to directly provide and/or arrange for financing or investment for the Project on commercial terms substantially comparable to or better than the terms of other financing options available to finance the Project when considered in conjunction with the other benefits brought by DFC to the Project in connection with the Project Development,” states Lemon.

The DFC’s Project Development product is part of the U.S. Better Utilization of Investments Leading to Development (BUILD) Act and provides support for high-impact companies to overcome operational, financial, and developmental challenges, thereby enhancing project viability and readiness for future investment.

Project Development Funding is tailored for projects with the potential to receive later DFC project financing of 100 Million U.S dollars construction financing.

Lemon says: “I am delighted to announce the participation of the DFC to assist Mkango to fast track the development of the Songwe Hill Rare Earth Mining Project in Malawi.”

“The US Government’s DFC recognizes the game-changing development potential of the Songwe Hill Rare Earths deposit and this initial Project Development Funding provides a path for Mkango to secure the longer-term development funding needed to develop Songwe Hill and positions the Mkango group as one of the few key players in the global rare earth supply chain.”

About the U.S. International Development Finance Corporation

The U.S. International Development Finance Corporation, established in 2019 with bipartisan support under President Trump, is America’s development finance institution. DFC partners with the private sector to advance U.S. foreign policy and strengthen national security by mobilizing private capital around the world.

DFC invests across strategic sectors including critical minerals, modern infrastructure, and advanced technology — fostering economic development, supporting U.S. interests, and delivering returns to American taxpayers.

USA NASDAQ Stock Exchange Listing

Mkango’s corporate strategy is to become a market leader in the production of rare earths.

Lancaster Exploration Limited (expected to be renamed Mkango Rare Earths Limited), owner of the Songwe Hill Rare Earths Project ("Songwe Hill") which will be producing a high value add purified mixed rare earth carbonate in Malawi and is designated as a strategic project under the EU Critical Raw Materials Act, is also applying for a listing on the New York US Nasdaq which will be the first Malawian business to list as a publicly traded company in the USA. Songwe Hill is also supported by the Minerals Security Partnership. The company will also be listing on the Malawi Stock Exchange.

Songwe Hill is part of a vertically integrated, pure-play global rare earth platform, with the goal to provide a mined, refined and separated supply of rare earth oxides to supply chains across North America, Europe, Africa and Asia.

Songwe Hill is one of the very few rare earth projects globally to have completed a NI 43-101 compliant Definitive Feasibility Study ("DFS"), with a full Environmental, Social, Health Impact Assessment ("ESHIA") completed in compliance with IFC Performance Standards.

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